Maximum Risk: ₹0
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Nifty 0 Bank Nifty 0
One of the most important tools in a traders bag is risk management. Proper position sizing is key to managing risk and to avoid blowing out your account on a single trade.
With a few simple inputs, our position size calculator will help you find the approximate amount of currency units to buy or sell to control your maximum risk per position.
To use the position size calculator, enter the currency pair you are trading, your account size, and the percentage of your account you wish to risk. Our position sizing calculator will suggest position sizes based on the information you provide.
Calculating your position size correctly is very important, especially if you are pursuing a money management strategy The main idea behind these levels is the support and resistance values for a currency pair trend at which the most important breaks or bounces can appear. It is recommended to set your stop-loss, take-profit as well as stop and limit orders at these levels or around their values. This position-size calculator will organize your currency trading experience and will allow you to be in the market full-time.
It takes smart choices to make smart money. Knowing your risk position is critical to establishing a winning Wall Street strategy. Our free position size calculator helps you make trading decisions based on intellect and not emotion. That’s how you trade like a pro. Chart Your Trade helps you identify your best opportunities, and the calculator helps you know how much and when to invest. Importantly, it also helps you know when to stop.
Give it a try! Use the calculator to establish and understand your risk tolerance. Wall Street pros know exactly how much money they can afford to invest and how much they can afford to lose. That knowledge, combined with your Chart Your Trade benefits like knowing the hottest stock picks every month and the exact point to enter the market, will help you develop a winning strategy.
Instrument: Traders can select from major forex pairs, minors and exotics, several cryptocurrencies, such as BTC/USD, ETH/USD, LTCUSD, XLM/USD and XRP/USD, and a range of commodites, such as Gold, Silver and Oil. Lets choose, for our example, the USD/CAD pair.
Deposit currency: The account base currency is important to assess the ideal lot size, as it takes into consideration the pip value and the market rate of the selected cross. We choose USD as our deposit currency, for this example.
Stop-loss (pips): Traders should input the maximum number of pips willing to risk in a trade. For this example we will use 100 pips for our stop-loss.
Account balance: Pretty straight forward, traders just need to input the account equity. For our example, we will type 2000.
Risk: The crucial field of this Position Size and Risk Calculator! In this field traders can select from a risk percentage or any value in the account base currency ($2, $20, $40, etc). As a guideline, professional traders do not risk more than 2% of the account equity per trade. This money management rule allows traders to last longer in their trading careers, and eventually, also to recoup from previously losing trades. So, for our example, we will select 2% risk.
Now, we hit the Calculate button.
The results: The Position Size and Risk Calculator uses a market price live feed with the current interbank rate (in a 5-digit format) and it will display the selected currency pair price (in our example the USD/CAD price).
In this case, using a stop-loss of 100 pips and risking 2% of our account equity, the recommended lot size would be 0.05 lot.
Next, the calculator displays the amount of units that the 0.05 lot represent; 5,000 units, and finally the portion of the account equity at risk, or the value of the position, in our case, 40 USD.